16:57Machine-translated from Azerbaijani by AIRead in Azerbaijani
Stripe and Advent abandon plan to acquire PayPal
Payment technology company Stripe and investment firm Advent have reportedly abandoned their plan to acquire PayPal. According to Bloomberg, the parties are not currently continuing talks about a potential acquisition. According to the report, Stripe and Advent made an offer of approximately $53 billion for PayPal in July. At the time, PayPal’s market value had fallen to approximately $40 billion, nearing historic lows. However, PayPal did not accept the offer, and Stripe and Advent considered offering a higher amount.
If the deal had gone ahead, it could have been one of the largest leveraged buyouts in history. One of the main reasons for Stripe and Advent’s interest in PayPal was the difficulties the company had recently faced and the significant decline in its market value. For comparison, PayPal’s market value rose as high as $320 billion during the most active period of the COVID-19 pandemic. However, the situation has changed in recent months. PayPal’s latest quarterly financial results surpassed most market expectations. Meanwhile, reports about a potential acquisition helped the company’s shares rise by approximately 40%. The increase in the share price could also raise PayPal’s acquisition price, making such a large transaction more difficult to finance. Enrique Lores, who was appointed PayPal’s CEO in March, is trying to restructure the company’s operations. His strategy includes dividing PayPal’s operations into three main areas: the online payment system, Venmo and crypto services. For Stripe, acquiring PayPal could have reduced the company’s dependence on Visa and Mastercard while allowing it to add Venmo’s payment infrastructure and PayPal’s cryptocurrency capabilities to its ecosystem.
If the deal had gone ahead, it could have been one of the largest leveraged buyouts in history. One of the main reasons for Stripe and Advent’s interest in PayPal was the difficulties the company had recently faced and the significant decline in its market value. For comparison, PayPal’s market value rose as high as $320 billion during the most active period of the COVID-19 pandemic. However, the situation has changed in recent months. PayPal’s latest quarterly financial results surpassed most market expectations. Meanwhile, reports about a potential acquisition helped the company’s shares rise by approximately 40%. The increase in the share price could also raise PayPal’s acquisition price, making such a large transaction more difficult to finance. Enrique Lores, who was appointed PayPal’s CEO in March, is trying to restructure the company’s operations. His strategy includes dividing PayPal’s operations into three main areas: the online payment system, Venmo and crypto services. For Stripe, acquiring PayPal could have reduced the company’s dependence on Visa and Mastercard while allowing it to add Venmo’s payment infrastructure and PayPal’s cryptocurrency capabilities to its ecosystem.